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Is it best practice to use delivery rev rec rule for usage based items?

in Ask A Guru 5 comments

Hi, Gurus! :)

I have an ARM question related to usage-based items and best practices.

Example:

I sell cloud storage & charge based on usage.

I sell 100 GB of available storage.

Contract is for 1 year, and the client uses 5 GB in month 1, and 15 GB in month 2.

Question:

Is it best practice to have this as a "deliverable" item & create an SO for 100 units?

Potential setup:

Rev rec rule will be a "delivery" rule based on quantity.

Rev rec start and end dates will event dates.

Revenue arrangement will be created when I update arrangements.

Plans will be created upon delivery.

In month 1, I would "deliver" 5 units, which would trigger revenue plan.

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